Ask Andy: Closing fees on new cars

(WMC TV) - Look closely the next time a new car contract's slid toward you on a dealer's table.

There are a lot of closing fees on that document. In fact, there could be more than a dozen closing fees on a new car sales contract.

Consumer Reports says you're stuck with some of those fees, but it says you should challenge the dealer on a few of the others, including these:

* DEALER PREPARATION FEE.Consumer Reports says car manufacturers pay the dealers to remove the coatings and coverings that protect the car during shipment, so the dealer shouldn't be double-dipping by getting you to pay for it, too.

* CREDIT LIFE INSURANCE. This is a little rider that'll pay off the vehicle if you die before you finish making the payments. Your own life insurance policy may already cover that.

* DISABILITY INSURANCE. A dealer may try to squeeze in this rider to cover any payments in the event you get hurt and can't earn a living. But if you already have disability insurance with your employer or on your own, this is an unnecessary fee.

* VIN ETCHING. This is where your vehicle identification number is etched into your windshield. Consumer Reports says some states require dealers to do that, but they don't require car-buyers to pay for it. Plus, the VIN is already bolted into the dashboard and pasted on the driver's side door. Ask your salesperson if the dealership is passing the cost of this service on to you.

There are a few other closing fees that could be tossed out, too, plus ones that are simply unavoidable. For Consumer Reports' breakdown of all of them, please click here: